Breaking News
Close
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Nikkei slumps to 4-month low as inflation scare hits expensive shares

Stock MarketsMay 13, 2021 05:18
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

TOKYO, May 13 (Reuters) - Japanese shares sank on Thursday,
with the Nikkei average hitting a four-month low, as SoftBank
Group 9984.T and highly valued stocks were pummelled by U.S.
inflation scare.
The Nikkei index .N225 dropped 1.84% to 27,628.73, hitting
its lowest level since early January, while the broader Topix
.TOPX shed 0.61% to 1,866.57, touching a three-month low.
"Inflation worries are hitting high-tech stocks while rising
domestic coronavirus infections are raising concerns about
political stability. And, companies' guidance is pretty soft,"
said a strategist at a Japanese brokerage.
"But I do expect the market to bottom out soon. You can't
keep selling forever when earnings are still improving."
A shocking rise in U.S. inflation published on Wednesday
fanned worries U.S. interest rates may need to rise sooner than
expected.
That bludgeoned Wall Street overnight, especially tech
shares whose high valuations have been based on the assumption
of low interest rates, and hit Japanese equivalents as well.
SoftBank Group 9984.T dropped 7.2% as concern over its
frothy portfolio valuations eclipsed the fact that it has
announced a record profit for a Japanese firm. Other richly valued shares, mainly from the tech and
healthcare sectors, fell sharply, with medical equipment maker
Terumo 4543.T down 4.3%, chip-making machine maker Tokyo
Electron 8035.T losing 4.4% and lens maker Hoya 7741.T
dropping 3.2%.
Also hurting market sentiment, Japan is struggling to
contain the COVID-19 pandemic, forcing dozens of towns to
abandon plans to accept overseas athletes competing in the
Olympics from July due to concerns about inadequate resources.
Earning results also continued to weigh on the market, with
softer-than-expected guidance often enough to trigger big
selling, dwarfing improving profits.
Game company Nexon 3659.T lost 15.3%, while electronics
maker NEC 6701.T dropped 11.7%. JGC Corp 1963.T fell 10.6%.
Meanwhile, about a third of shares on the main board managed
to gain, led mainly by value shares, such as steelmakers
.ISTEL.T and banks .IBNKS.T . The Topix Value index .TOPXV
was almost flat.
Retailer Seven&i Holdings 3382.T jumped 6.8% to a two-year
high after activist investor ValueAct Capital amassed a $1.53
billion stake in the firm. Sumitomo Mitsui Trust Holdings 8309.T gained after the
Nikkei business daily reported the banking group planned to sell
down all of its cross-holding shares.

Nikkei slumps to 4-month low as inflation scare hits expensive shares
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
DOWNLOAD APPApp store
Investing.com
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
or
Sign up with Email